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xZx

07/10/08 9:57 AM

#71194 RE: GreekPimp #71193

GP, would you at least admit your question just defied all logic? what you suggested is that DR would invite a crowd of institutional traders to participate in a private placement, and then they would all dump immediately for a loss.

why would they do such a thing?

in my original post, i advanced the theory that since they control a huge % of the current float they could do just the opposite. if they all decide to hold tight the stock will move higher with ease. and... for a minimal additional investment these bigger fish could quite literally chase retailers up the chart.

think about it for a moment. do the math: if they were to soak up an additional 35.5% of the float they could buy every single remaining share, and we know institutional investors already own a significant portion of the existing float, so the actually retail component is effectively much less than 35.5%.

i'm not saying they would buy out the smaller traders, because it's healthy for a stock to have a retail component -- it creates liquidity -- but it suffices to say they could write their own ticket by pushing the stock wherever they want it to go, and my hunch is they want it to go a lot higher.





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jchawk

07/10/08 9:58 AM

#71195 RE: GreekPimp #71193

If DPDW sold shares without adding value it would be dilution.

This is not the case as they sold shares to raise capital to add an acquisition which added IMMEDIATE REVENUE TO THE BOTTOM LINE.

Guys the sale of shares to raise money to purchase Flotec was a good thing.

23 million in revenue immediately added. (number off the top of my head, but I think I'm right).